The first step was taken Tuesday in the transfer of ownership of the San Diego Padres from John and Becky Moores to a group of unidentified California businessmen led by former player agent Jeff Moorad.

The complex transaction could take up to five years to complete.

Papers were signed giving Moorad's group an immediate one-third share in the Padres upon the closing of the transaction, which is expected sometime between the end of the month and Opening Day on April 6.

When the sale closes, Moorad would become the CEO of the Padres and ostensibly in charge of day-to-day operations.

Current Padres CEO Sandy Alderson issued a statement Tuesday afternoon saying, “I will be leaving the organization ... upon the closing of the sale.”

Moorad, during a teleconference Tuesday from his Newport Beach home, said: “John (Moores) will continue as the chairman of the club and in his role as control person of the club on various committees and boards and at the owners meetings.

“John is the control person of the club; I'm CEO with daily control.”

Although what is essentially an installment sale could be completed within the next year or drawn out over five years, the projected completion period is about three years.

“We've built flexibility into our agreement,” Moorad said.

As the stake of the Moorad ownership group increases, Moores will be eased out. Eventually, all of the Mooreses' interest in the club will be bought. Moorad declined to address why the sale is being carried out over a long period, but it is believed the process will allow Moorad's group time to complete financing.

Details of the sale were negotiated over the past month.

Moorad wouldn't reveal the names of people in his ownership group, nor the final purchase price.

But the final sale valuation of the club should top $500 million with an initial payment of about $150 million going to John and Becky Moores upon closing.

Part of that $500 million will be the team's $240 million debt service from the construction of Petco Park – $145 million of which is secured in an 8 percent bond that cannot be prepaid.

Seventy-five percent of Major League Baseball's owners have to approve the installment sale – which Moorad acknowledged is unusual for baseball but parallels the guidelines used in the sale of the NFL's Baltimore Ravens, which closed in 2004.

“MLB has been approving documents on a step-by-step basis,” Moorad said. “They have given us signals that we're headed in the right direction.”

Moorad still must divest himself of his 12 percent interest in the Arizona Diamondbacks. He resigned as the Diamondbacks CEO on Jan. 3 when he entered into an exclusive agreement with the Mooreses to purchase the Padres.

John Moores, who purchased the Padres for $84 million from a group led by Hollywood producer Tom Werner in 1994, told MLB.com on Tuesday that he expects to control the Padres for the next three seasons. Moores did not respond to requests for comment from The San Diego Union-Tribune.

Ownership of the Padres came into question last year when the Mooreses began divorce proceedings. Between them, John and Becky Moores own 90 percent of the Padres, with daughter Jennifer owning 5 percent and San Diego businessman Glenn Doshay owning the other 5 percent.

Other than Alderson, Moorad said no other changes are immediately forthcoming.

“I come in open-minded,” said Moorad, who talked to Alderson on Monday night and again Tuesday morning.

“I know (General Manager) Kevin Towers and I have great respect for him. I know Paul DePodesta (special assistant for baseball operations) and several others in the front office. Probably I'll take most of the 2009 season to evaluate. The club this season is pretty much locked in. Maybe we'll make a couple changes.

“This is not a transaction about 2009. It's for the long term.”

Moorad said the model for the Padres' future, like that of the Diamondbacks, is more in the draft and player development than free agency.

Arizona's payroll the past several seasons was between $70 million and $80 million. The Padres this season cut their payroll to about $44 million – a number that Moorad said would grow in the future, but not to triple-digit levels.

“Our commitment is strong,” Moorad said. “We're going to invest every dollar back in the product, either the team or improvements to Petco Park. We will re-invest everything we can.

“Fortunes can turn in a hurry in baseball. We want to re-invigorate the Padres. I realize teams cycle up and cycle down. I don't think it's that hard to turn things around in a hurry.

“We'll get back to rebuilding the payroll in a way that makes sense. We won't operate in the 40s beyond this year. I'm convinced that anything is possible.”

However, Moorad said he would not influence immediate decisions – including whether the Padres might trade Jake Peavy.

“I'm on the sidelines right now,” Moorad said. “At this time, I'm focused on the transaction. I won't comment on Jake Peavy or any other player. Right now, that would be inappropriate.

“I really don't have any input right now on any decisions. The general manager and the staff will keep me apprised.”

Moorad said he welcomes the counsel of John Moores.

“If I had to pick a partner, it would be John,” Moorad said. “I want John's input on baseball decisions. ... He will continue to be involved. But he's made it clear to me that he wants me to take the leadership role. John's excited about taking a bit of a back seat. He can be as active as he chooses to be.”

Moorad, a UCLA graduate, has a 25-year history in professional sports, working for many years as a player representative for top athletes in baseball and football. He purchased an ownership stake in the Diamondbacks in 2005.

“I also know that we have a responsibility to our fans, as they are the spirit and heart of the Padres,” Moorad said. “I look forward to providing an affordable, rewarding fan experience for all.”

San Diego Mayor Jerry Sanders said he hopes the sale heralds a new excitement about the team, which eventually translates into more fans at Petco Park and the surrounding neighborhood – and more sales tax revenue for the city.

“I think any time that you decide to turn the page, that new ownership starts out pretty enthusiastically, so that's what I hope would happen here,” Sanders said.

He reiterated that the sale won't affect the terms of the lease and in particular how long the team plays at the 5-year-old ballpark.

The team is committed to playing downtown until 2032 – the year the city is scheduled to complete its bond payments on the $474 million ballpark. The city pays $11.3 million a year on the bonds.

According to the team's agreement with the city, a new owner would have to assume all Padres obligations. Those include splitting the cost of ballpark operating expenses, which last season amounted to $10.5 million, with the Padres paying $6.6 million and the city $3.9 million.